Amazon.com Inc. is turning to Fidelity Investments to keep track of the billions of dollars in assets in the tech giant’s 401(k) plan for employees.
The Seattle-based company (Nasdaq: AMZN) is booting The Vanguard Group as its 401(k) recordkeeper in favor of Fidelity, effective in January, it said in a securities filing this week. The decision was first reported by the trade publication Pensions & Investments.
The move gives Fidelity responsibility for the administration of the retirement savings plan for one of the largest companies in the U.S., both by headcount and by market capitalization. As of the end of 2018, Amazon had $5.7 billion in total assets in its 401(k) plan, according to a tax filing with the U.S. Internal Revenue Service.
An Amazon spokesperson declined to say why it had made the switch to Fidelity.
“We continuously evaluate our benefit offerings to ensure the best possible experience for our employees,” the spokesperson said in a statement.
While its star stockpickers and flirtations with cryptocurrency may garner more attention, Fidelity’s administration of 401(k) and similar plans makes up a substantial part of its business. As of the end of 2018, the company’s workplace investing division administered $1.9 trillion in customer assets — over a quarter of the total at Fidelity — for more than 22,000 clients.
Fidelity provides similar services to some of the country’s other largest companies, including Facebook Inc. and Microsoft Corp.
Here are the most valuable brands in Massachusetts, according to the calculations of consulting firm Brand Finance, as well as the estimated value of the brand and where it ranks nationally.
Total Massachusetts employees
| Rank | Prior Rank | Company/Prior rank (*unranked in 2018)/ |
|---|---|---|
1 | 1 | Partners HealthCare |
2 | 2 | Beth Israel Lahey Health |
3 | 2 | University of Massachusetts |
